Atlanta Buckhead Midtown - Mortgage Matters - PMI vs MIP

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Real Estate Broker/Owner with Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ...

Atlanta Buckhead Midtown
- Mortgage Matters -
PMI vs MIP

 

 

PMI vs MIP - what is the difference?  Basically, both are Mortgage Insurance.

 

Private Mortgage Insurance is abbbreviated as PMI.  Lenders require it to limit their risk when the loan they make is for more than 80% of the home’s value. Both the Borrower's Credit Score and the Loan To Value (LTV) ratio determine the amount of PMI paid with the monthly Loan Payment. 

 

Mortgage Insurance Premium is abbreviated as MIP or perhaps as MI.  When an FHA Loan requires Mortgage Insurance, the name is different since the Insuring Agency is the Department of Housing and Urban Development (HUD), not a private company. 

 

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Rainmaker
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Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

PMI I knew; MIP is new to me. Thanks for this morning's education, Lynn.

Sep 19, 2019 07:30 AM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lynn these days one of the big difference between PMI and MIP is that no matter how much a buyer puts down as a down payment on an FHA loan, they will still have the MIP on the loan for at least 11 years.

Sep 19, 2019 02:01 PM #2
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